Steelmakers raise prices on firm demand, costlier inputs

Domestic steel prices have continued to rebound during the past few months propelled by firm demand and higher raw material prices. The weaker monsoon meant that pace of construction activities also was not impacted much while the recent rise in prices of coking coal and iron ore have also forced steel makers to raise prices, said analysts.

- Ujjval Jauhari

Steel prices are up by around ₹2,000 a tonne on a blended basis since July-end, as per industry sources. The prices of long and flat steel products, after softening till June-July, however, are up more than 10% and 4% in the past two and a half months, analysts say. The rise has been higher in the long products that are used in construction activities while flat product prices saw slower pace of rise.

The demand momentum remains strong in the country led by government spending in the pre-election year.